U.S. Customs and Border Protection and NCFAA Customs Committee Meeting Hyatt Capitol Hill - Washington, DC Wednesday September 13, 2017 Minutes

Transcription

1 U.S. Customs and Border Protection and NCFAA Customs Committee Meeting Hyatt Capitol Hill - Washington, DC Wednesday September 13, 2017 Minutes Valerie Neuhart opened the meeting by sharing the appreciation that CBP has for an opportunity to speak with the NCBFAA Customs Committee and obtain our feedback for issues, such as down time or Sec De minimis, which affect CBP and industry Mary Jo Muoio began by covering the regularly scheduled calls with CBP since August of 2016 and the time spent on the Spreadsheet of open items in ACE One of the items is greater transparency in the release messaging. Messaging for ABI in ACE have growing. We have asked for a detailed list of codes and messages to review with CBP to review them for clearer language for better compliance with the messages. Jim Swanson explained that the messaging codes and explanations were available in ACS. This was not carried into ACE. The CATAIR was updated with the codes, but not with a clear explanation, He wants to add a column to advise the intended use of the code. Gary Schreffler discussed a problem with release suspended message coming up weeks and months after the release. This is caused by edit errors. Most of them are tied to manifest updates being done by the carriers. CBP is testing a fix to this right now. If this happens to an entry where the summary has been paid in, there will be no problem. If it happens to an entry prior to the filing of the summary, it can be problem if that entry was replaced by another entry. Gary suggested that we use the CF-007 report to check what is outstanding. This should not result in late files based on the summary release date. CBP will own if they did not have the code right. We shouldn t see late filing fees. Mary Jo asked if we had examples of files based on release suspended setting the dates, please send to askace@cbp.gov, and to copy the committee too. We had a discussion about the release message received when ocean cargo is 5 days out. This causes confusion. Jim Swanson reminded us that by regulation release cannot happen until cargo has actually arrived. The admissible message before the 5 days out tells us that the data is acceptable. The release message 5 days out or closer is conditional on the arrival of the goods and is to tell us that the cargo will be released upon arrival unless something causes it to be overridden. Also, if the cargo is not arrived, there is no release. There is still a problem on having to DIS all documents for all shipments at the Northern Border. When asked about a letter for a blanket flag for ID privileges, Jim cautioned that every entry would be treated under the privilege. If any got missed it could result in penalties. Jim added that either a blanket letter or statement in DIS, not both. Electing ID is the exception, not the default. CBP will take a look and refer to the internal memo for the ports. Alan Klestadt reminded us to keep records of any attempts to request the ID privilege.

2 We continued our discussion on the 32 open ACE issues. Dan Meylor reminded Jim Swanson that we just need the message on how long to wait for the export message for TIB s to close that item. Jim has that on his desk for completion. Currency conversion is very important to us and we believe also to CBP to have in ABI, Several programs that feed to the entry in our ABI programs rely on these dates. We reminded CBP that many brokers, working with CBP, built programs around receiving and processing AII data. AII will be needed if CBP want to go to a truly digital world, House bill in Ocean manifest for release is in line to be developed and is a priority for CBP. CBP stated that they know how precious these funds are, want it to be rolled out as efficiently and effectively as possible. Mary Jo Muoio asked if NCBFAA can come in at the beginning of the process. CBP responded that they will reach out when the time is right. PSC filing has been extended to 300 days from date of entry. Programing needed to produce the broker copies of 28 s and 29s electronically so that they can go out with the original to the importer we want those back electronically. This will assure that the broker will get his copy, which is not always happening now. Protests- Filers need messaging for acceptance and denial of protests. Explanations of why there is a denial is needed for a review of the CBP s decisions when protests get acted on. Most of all we NEED a date of the denial. This date sets up timelines for actions against the denial. The life of a protest is a challenge for us. We need dates, reasons, notification of actions. This is all part of the legal process. Michael Cerny also brought up that drawback is not in ACE. There are issues with protest routing within drawback and Drawback Offices are asking for paper. We talked about blockchain technology that has been touted at the GAC session and at the CTPAT meeting. There was an all-electronic invoice that CBP has removed. AII needs to be reinstated We reminded CBP that file size limitations in ACE restrict what we could do in ACS. This will lead to many additional entries, especially in drawback and reconciliation. Regulations do call for one entry for the same vessel and file size would restrict this. Deployments: We reviewed the upcoming deployment schedules. We reminded CBP that we still need the updated CATAIR on statements. Monika Crockett will issue a CSMS with the code changes. She also shared a list of updated reports in ACE. The new report should be available in ACE in October, but CBP will keep the old reports in the portal until February. Drawback - Michael Cerny reported that a lot of questions were answered in a meeting with Chris Young. We had hoped for core drawback to be deployed before the TFTEA drawback deployment. Together they make for a big deployment. We ae also concerned that early on

3 there may claims rejected and we are looking for contingency plans. CBP said that they are on track and that programs would be delivered by January PGA CBP has completed the automation for the PGA s and has provided DIS capabilities and interoperability. U.S. Fish & Wildlife is working through their pilot on COAC. F&W and CBP are working together on what information will be needed for E-Decs and other regulatory issues. This nothing new with CPSC on any pilots. AMS edits will be effective as of October 1. There will be no more soft errors and there will be rejects. FDA still cannot accept entry versioning. This on FDA s side and not CBP. Policy: PSC s- We talked about the possibility of a PSC $20.00 de minimis. We will follow up with Randy Mitchell. All PSC s are not being processed before liquidation. PSC s in ACE are a retransmission of the entry summary that was to be the version of record. It was to be liquidated as transmitted if accepted in ABI and no action taken. Right now liquidations are in ACS and there is no automated change liquidations. Change liquidations in ACS are manual. This will change when liquidations are deployed into ACE in February. Carnets- Different ports are requiring different documents to be submitted with carnets for release. For cargo with AMS locations, the input of the carnet should suffice. For Non-AMS locations, CBP should set policy for acceptance of an alternative to the presenting a CF 3461 with a copy of the signed of carnet. Many files can no longer produce the old CF 3461 in their ACE entry programs. Examples of Carnets with suggestions were given to Jim Swanson Additionally, some Ports are setting their own timeframes for submission of carnets such as 72 hours prior to export; letters of commodity exposure; statements that no State Dept. license Is required: blanket exams on all carnet; copies of the POA from the carnet party to the presenting party (not required if it is already signed) and some are asking for a bond with the carnet (?). We asked for some direction on the carnet release process and instruction for non- AMS warehouses to accept release. Jim Swanson will work with Amanda Barlow. We will follow up for a short letter that our members can share with local CBP. Jim will also see if a webinar can be worked on for training. De Minimis Sec. 321 Jim Swanson explained that the raise in the de minimis was part of TFTEA and no new programming was funded. With the growth of the use of Se. 321, there are system changes that are needed. CBP is working on a review and of possible solutions. There have been 2 additional funding requests. When entry type 86 was brought up, it was explained that this was just a manifest posting code. COAC has a de minimis working group and CBP is waiting for its recommendations. Downtime- Gary Schreffler explained that the recent major downtime was caused by a hardware failure and was not an ACE programming issue. CBP is looking at keeping on-site versions of the databases to minimize times. That are looking at additional infrastructure with expanded redundancy.

4 There were instructions to the Ports to each produce their own business recovery document. That has changed and CBP is working on a single document with adjustments for different modes of transportation and special Port needs. However downtime releases are based on security, law enforcement, trade enforcement facilitation. Two way communication at the Ports will be the key. Mary Jo Muoio brought up that the Dashboard is not always reliable and needs work. It showed everything was working well into the major downtime. She also asked for a CSMS message as soon as possible when a problem is discovers. If it is just in one Port, it is still important for RLF filers. The NCBFAA would also like this brought up at the BIEC meetings as downtime does affect the PGA processing and that processing must be considered. Customs Business Amy Magnus and Alan Klestadt had a meeting with members or O.R. & R to discuss recent rulings on Customs business that the NCBFAA did not agree with. There was one that led to a discussion the purpose of classification of products as only being for use for entry. There was a good dialogue. From this meeting OR&R agreed to visit some brokers offices to see how entry data is received and used for entry. OR&R could also see how brokers receive and review POA s, set up entries, and the collection and payment of duties. The NCBFAA had expressed its concern about off shoring entry and classification processes to any non-regulated party. Broker Audits There was a discussion about broker visits from the Ports. Jeannine Delgado explained that they are a general compliance review that last usually between 2 and 3 hours. The Port will call in advance will receive a written confirmation along with certain requests for documents. They are often based on broker performance and errors. A follow up letter will be issued. Jeannine also covered broker survey letters. They are a move to increase efficiency in the audit process along with technical assistance. A broker survey will gout to multiple brokers who hold the same concern for CBP. There is a lead office if there are concerns with any review. The survey will cover practices such as POA review, supervision and control, reasonable care, dealing with unlicensed individuals and recordkeeping. If the survey or a visit does show areas of concerns there could be a follow up audit if the concerns are not addressed. Stuart Schmidt pointed out that many brokers with multiple offices have a centralized compliance person or team located in one Port other than the one for the visit. He asked if brokers could work with CBP on future visits and surveys. Jeannine said that she would take that suggestion back. Regulatory Update Robert Altneau told us that the broker regulations are not in Dept. of Treasury, but with Homeland Security. He cited 19 CFR where authority for revenue function regulations are under the authority of the Dept. of Treasury and all other CBP regulations are under the authority of Homeland Security. With Executive Order #13771 of 1/30/17 with the 2 for 1 requirement, the agency workload has tripled. We asked if this included subparts. Robert said that he would have to defer for a review that question.

5 CBP is working on TFTEA requirements along with an active 111 review. They are taking into account COAC s recommendation. It should come out in separate draft with the separate 116. Both drafts should work together, but they still need an economic analysis. The drawback regulations have been signed off by the acting Commissioner and are being reviewed by Treasury. OMB also has a right for any package review. Brokers Exam October will have the first automated exam. There is a practice exam on the CBP website. Anyone planning to take the test should loo at this. The results should be posted the day after the test. NAFTA Update CBP involved with the trade negotiations and participated in the public hearings. They are working to move forward a package that will facilitate trade. They have never seen negotiations move this fast so far. Michael Cerny brought up that Section 303 in NAFTA has drawback limitations for U.S. companies. CBP is reviewing this. CSMS Bruce Ingalls called in for this meeting. He stated that CBP, along with other agencies, had received ad executive order about collections of debt. There have not been any collection policy changes, but a bill becomes past due after the 31 st day. CBP will begin dunning debtors after the 60 th day. If there is an active protest for a bill, CBP may divert the funds, but not apply them until the protest is decided. We had several questions including: Will the liquidation data or entry summary query show the information about any diversion? How will the filer be notified? What if the refund is designated to another party on a protest? Bruce agreed to take a call in the next few weeks to review these and other questions. Centers of Excellence Marla Bianchetta and Jennifer Dolan gave us an update on the entry specialist transition to the Centers. They are virtual and still in the ports. They will continue to provide support to local processes. Collections are still being taken at the ports, butt checks sent to the Centers will not be returned. They will be forwarded to the port. If there is a problem, filers can contact the entry specialists at the Port. CBP is working on updating the Center directory with the names and phone numbers of the entry specialists. If no solution there, then contact a Center supervisor or Assistant Center Director. The Cent Guidance Document was received in July and suggestions have been made for a written explanation of the three different division of the Centers and what each does. CBP is looking at this.

6 CBP has been assigning importers to their specific Center. Over 300,000 importers of record have been assigned. There has not been a formal written notice to the IOR, but we can see by looking at recent entries for the import specialist team assignment. If an importer is assigned, he last digit on the IST number for multiple entries will show the number of the Center the IOR has been assigned to. We commented that we ae still experiencing multiple requests from different Center members for the same entry, but different issues. Can the CEE track who has made first request and have additional challenges funneled through the first one? We are also receiving requests in ABI for documents after 30 days from the date of entry and receive follow up calls on why we did not respond. CBP needs to follow its own business rules. Please remind all the Centers. CBP will follow up. EXPORT ISSUES Automobile Export Process NCBFAA brought up a need for uniformity. Some Ports re taking weeks to review and making extraordinary requests. WE agree with Jim Swanson and Robert Rawls that car exports are too often a source for contraband funds. CBP is looking to automate VIN numbers, but that will take funding. Robin Grove submitted a paper on Automobile Exports and the NCBFAA stands behind it. Changes will take funding. Jan Fields asked about ACE downtime on the export side. CBP would like to not make it single point dependent and is working on a permanent point of contact. Jim Swanson added that when multiple outages occur at one is the biggest issue for export. CBP is working on timeframes between CBP and Census for all modes of transportation. USPPI Jan Fields brought up that the USPPI is responsible for the export control. There are times when the cargo is entered in error and subsequently exported with no U.S. Buyer. Regulations imply the broker is then the USPPI when in fact they have no technical knowledge of the product. When there is no USPPI, can there be a code to ID that no one knows who the USPPI is? Export Manifest There are 3 pilots with only 9 participants. The party with the most info for the manifest is the Freight Forwarder, so CBP will like more FF s to participate. The pilot is growing and CBP would like to start drafting regulations by mid-june. At this time Option 4 is not tenable in the long term. CBP feels that Option 3, a 2 step process, will fail. Instead CBP trying to build a programs for low risk exports to help facilitate US exports. For the new regulations, for TFTEA, the date of departure is important instead of scheduled date of departure.ds. There should be a mandate that carriers update export manifest with actual date. This should be brought in to the Drawback working group. On consolidations, can one piece be taken out and let the rest go like the test in Los Angeles? CBP would like to end consolidations, but that does not fit the industry business model. There is a challenge that the EEI and export function are intended to be different.

7 CBP is trying to simplify the process where once the data information is received, it should not have to be transmitted twice. At the Southern border, when entities hand off with a change of carriers, they need two transmissions. Truck is looking for a single data set. CBP is looking for volunteers as they are working with Canada to push the international model.